Here Are Four Tactics That Financial Fraudsters Use To Take Your Money

The financially literate are more likely to get scammed by financial fraudsters than are members of the general public, according to the findings of a study conducted by the FINRA Foundation and the AARP.

Morningstar's Adam Zoll interviewed Doug Shadel, director of AARP Washington and author of the book, Outsmarting the Scam Artists.

"They (the victims) tend to have higher levels of income, more assets, all the things that seem counterintuitive to the victim population," said Shadel in the interview.

Here are the top tactics that financial con men use to reel in their victims, according to Shadel:

1. One trick financial fraudsters use is to offer victims exactly what they want. If an offer seems too good to be true, it probably is.

2. All good cons have an element of truth to them.

"One [instance of financial fraud] that comes to my mind is oil and gas. 'You can get a 10-to-1 return. We're doing more domestic production than ever.' All of which is true. The best scam always has an element of truth to it."

3. They claim that everyone, including, Buffet is doing it. The goal is to make their operation seem legitimate, and it works.

4. They'll ask you to check their FINRA registration (in hopes that you won't). Just making the claim of legitimacy is usually enough, as victims typically don't check.

Watch the full interview: